SunGard Announces Second Quarter 2000 Results and Adoption of Stockholder Rights Plan.Business Editors/Hi-Tech Writers WAYNE Wayne, city (1990 pop. 19,899), Wayne co., SE Mich., a suburb of Detroit, on the Lower Rouge River; inc. as a village 1869, and with surrounding areas as a city 1960. It has automobile and aircraft industries and other varied manufactures. , Pa.--(BUSINESS WIRE)--July 20, 2000 SunGard (SunGard Data Systems Inc., Wayne, PA, www.sungard.com) A computer software and services company specializing in financial services, investment support systems and business continuity. SunGard was formed in 1983 from four subsidiaries of the Philadelphia-based Sun Company. (NYSE NYSE See: New York Stock Exchange :SDS 1. (company) SDS - Scientific Data Systems. 2. (tool) SDS - Schema Definition Set. ) reported today that net income for the three months ended June June: see month. 30, 2000, excluding one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charges, was $54.4 million, an increase of 28% over originally reported net income of $42.6 million for the same period in 1999. The related diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. net income per share was $0.40 for the quarter, a 14% increase over originally reported second quarter 1999 diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of $0.35, before merger costs. Cash earnings, which are earnings per share excluding after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. amortization of acquisition-related intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. and merger costs, were $0.48 for the second quarter, a 20% increase over the corresponding quarter last year. James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. L. Mann, chairman and chief executive officer, stated, "This was another solid quarter for SunGard, and we confirm our 2000 outlook for diluted net income per share in the range of $1.58 to $1.64. We are realizing the results of our integrated eProcessing strategy. By leveraging synergies within SunGard and adding value to acquired products, we offer end-to-end end-to-end a pattern of anastomosis in which severed ends are matched and united, in contrast with other patterns such as end-to-side or side-to-side. Usually applied to anastomosis of the intestine. , straight-through processing straight-through processing The direct exchange of cash and securities. Straight-through processing is a major objective for cross-border transactions that are generally much more costly to settle compared to domestic transactions. solutions which differentiate differentiate /dif·fer·en·ti·ate/ (dif?er-en´she-at) 1. to distinguish, on the basis of differences. 2. to develop specialized form, character, or function differing from that surrounding it or from the original. SunGard from competing niche niche: see ecology. niche Smallest unit of a habitat that is occupied by an organism. A habitat niche is the physical space occupied by the organism; an ecological niche is the role the organism plays in the community of organisms found in the products. The result of this strategy has been a growing number of large contracts for integrated solutions that include multiple SunGard products. With SunGard solutions processing over 2 million trades daily, routing nearly 70% of Nasdaq trade orders and managing over $7 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time. (mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed. In the USA and Canada, 10^12. in assets, we are confident that 2000 will be a good year." For the second quarter, revenues were $401.1 million, an increase of 20% compared to originally reported revenues of $333.4 million for the same period in 1999. On a restated basis, revenues increased 14% for the quarter. For the first six months of 2000, revenues were $785.8 million, an increase of 20% over originally reported revenues of $653.0 million for the first six months of 1999. On a restated basis, revenues increased 12% for the first half of the year. Investment Support Systems revenues increased 24% to $291.6 million. The Company continued its development of end-to-end, straight-through processing (STP STP or standard temperature and pressure, standard conditions for measurement of the properties of matter. The standard temperature is the freezing point of pure water, 0°C; or 273.15°K;. ) solutions and is in the process of rolling out MINT mint, in finance mint, place where legal coinage is manufactured. The name is derived from the temple of Juno Moneta, Rome, where silver coins were made as early as 269 B.C. EAI (Enterprise Application Integration) Refers to various techniques used to share data and business processes in large enterprises. When companies acquire another organization, disparate information systems have to be made to work together. (enterprise application integration) technology across SunGard businesses and identifying new integration opportunities. Sales of integrated solutions have been one of the reasons why the volume of both assets processed using INVEST ONE and securities processed using Phase3, increased more than 80% over the last year. Acceptance of and demand for the SunGard Transaction Network (STN (SuperTwisted Nematic) A passive matrix LCD technology that provides better contrast than twisted nematic (TN) by twisting the molecules from 180 to 270 degrees. See DSTN. ) is exemplified by a growing number of clients and SunGard products and solutions now linked to the network. STN clients now include 50 pension plan administrators and third party processors servicing many thousands of 401k plans, 200 trust banks and over 250 broker/dealers. Bridge Information Systems joined as yet another partner, linking its Triad customers to SunGard's BRASS through STN. STN is a fully automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. solution linking investors and asset managers with brokers, brokers with exchanges, exchanges with banks, and banks with settlement agents and custodians
The Custodians is terminology in the Bahá'í Faith, which refers to nine Hands of the Cause assigned specifically to work at the Bahá'í World Centre in attendance to the Guardian of the Faith. , to achieve straight-through processing for securities transactions. Business Continuity and Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the Services (BCIS BCIS Bureau of Citizenship and Immigration Services (US Department of Homeland Security) BCIS Building Cost Information Service (Royal Institution of Chartered Surveyors - UK) ) revenues increased 11% to $100.6 million in the second quarter. This reflects strong performance in the core recovery services business and SunGard's expansion into the broader enterprise outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. market for high-availability infrastructure for Web hosting Making a Web site available on the Internet. Many ISPs host a few personal Web pages for an individual at no additional cost above the monthly service fee, but the address is subordinate to the ISP; for example, www.friendlyisp.com/pat_smith. , co-location Placing equipment owned by a customer or competitor in an organization's own facility. Telephone companies often allow co-location in order to provide the best interconnection between devices. and application service provision (ASP asp, popular name for several species of viper, one of which, the European asp (Vipera aspis), is native to S Europe. It is also a name for the Egyptian cobra (Naja haja). ). BCIS recently announced a $1 billion backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. in contractually con·trac·tu·al adj. Of, relating to, or having the nature of a contract. con·trac  tu·al·ly adv.Adv. 1. recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. revenues for continuity services. During the quarter, SunGard completed three acquisitions to further its integrated STP solutions. In the brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. and execution area, SunGard acquired Frontier frontier, in U.S. history, the border area of settlement of Europeans and their descendants; it was vital in the conquest of the land between the Atlantic and the Pacific. Analytics, Inc. which provides sophisticated investment analysis and asset allocation Asset Allocation The process of dividing a portfolio among major asset categories such as bonds, stocks or cash. The purpose of asset allocation is to reduce risk by diversifying the portfolio. software to professional investors and financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. companies. The Company also acquired McSherry & Co., an agency execution broker, to provide greater NYSE floor coverage and trade execution through SunGard's wireless STP trading solutions for listed securities Listed Security Securities that have been accepted for trading purposes by a recognized and regulated exchange. Notes: Listed securities have the advantage of higher liquidity within a regulated environment. . In the risk and derivatives derivatives In finance, contracts whose value is derived from another asset, which can include stocks, bonds, currencies, interest rates, commodities, and related indexes. Purchasers of derivatives are essentially wagering on the future performance of that asset. area, the Company acquired RioFin Limited, a company that provides value-added val·ue-add·ed adj. Of or relating to the estimated value that is added to a product or material at each stage of its manufacture or distribution: applications for trading, operations and risk management for use with SunGard's Panorama offering. Net income after merger costs and diluted net income per share for the second quarter were $53.7 million and $0.40, respectively, as compared to pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income after extraordinary items and pro forma diluted net income per share of $37.2 million and $0.29, respectively, for the second quarter of 1999. For the first six months of 2000, net income and diluted net income per share, excluding one-time items and restatements, were $97.5 million and $0.72, respectively, increases of 22% and 9% over originally reported net income and diluted net income per share for the first six months of 1999 of $79.8 million and $0.66, respectively. SunGard also announced that its board of directors approved the adoption of a Stockholder Rights Plan under which all stockholders of record as of July July: see month. 20, 2000 will receive rights to purchase shares of a new series of preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. . The rights plan is designed to enable all SunGard stockholders to realize the full value of their investment and to provide for fair and equal treatment of all SunGard stockholders if there is a hostile attempt to acquire SunGard. The adoption of the rights plan is intended as a means to guard against abusive Tending to deceive; practicing abuse; prone to ill-treat by coarse, insulting words or harmful acts. Using ill treatment; injurious, improper, hurtful, offensive, reproachful. takeover To assume control or management of a corporation without necessarily obtaining actual title to it. A takeover bid or tender offer is a proposal made by one company to purchase shares of stock of another company, in order to acquire control thereof. tactics and is not in response to any particular proposal. The rights will be exercisable only if a person or group acquires or announces a tender offer for 15% or more of SunGard's common stock. In this case, all rights holders except the 15% buyer will be entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: to purchase SunGard common stock at a discount. The effect is to encourage potential acquirers of more than 15% of SunGard's common stock to negotiate with SunGard's board of directors. The rights will be distributed as a non-taxable non-taxable adj → nicht steuerpflichtig non-taxable adj non-taxable income → reddito non imponibile dividend and will expire expire /ex·pire/ (ek-spi´er) 1. to exhale. 2. to die. ex·pire v. 1. To breathe one's last breath; die. 2. To exhale. ten years after the record date. The rights will trade with SunGard's common stock unless and until they are separated upon the occurrence of certain future events. SunGard's board of directors may terminate Terminate (terminat.exe) was a shareware modem terminal and host program for MS-DOS and compatible operating systems developed from the early to the late 1990s by the Dane Bo Bendtsen. The last release (5. the rights plan at any time or redeem redeem v. to buy back, as when an owner who had mortgaged his/her real property pays off the debt. The term also refers to paying the amount due and all charges after a foreclosure (due to failure to make payments when due) has begun. the rights before a person acquires 15% of SunGard's common stock. Additional details regarding the rights plan will be outlined in a summary to be mailed to all stockholders as soon as practicable practicable adj. when something can be done or performed. . The Company will make available a replay of the investor conference call beginning July 21, 2000 at 12 noon EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT through midnight on Thursday Thursday: see week. , July 27, 2000. To listen to the replay, dial 719/457-0820; passcode No. 920680. A Webcast replay and formal comments made on the call will be posted on the Company's Web site at www.sungard.com. SunGard (NYSE:SDS) is a global leader in integrated IT solutions and eProcessing for financial services. SunGard is also the pioneer and a leading provider of high-availability infrastructure for business continuity. With annual revenues in excess of $1 billion, SunGard serves more than 10,000 clients in over 50 countries, including 47 of the world's 50 largest financial services institutions. Visit SunGard at www.sungard.com. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 Statements about the Company's outlook for 2000 and all other statements in this release other than historical facts are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to risks and uncertainties that may change at any time and differ from actual results. Forward-looking statements include information about possible or assumed future financial results of the Company and usually contain words such as "believes," "intends," "expects," "anticipates," or similar expressions. The Company derives most of its forward-looking statements from its operating budgets Noun 1. operating budget - a budget for current expenses as distinct from financial transactions or permanent improvements budget items, operating cost, operating expense, overhead - the expense of maintaining property (e.g. and forecasts, which are based upon many detailed assumptions. While the Company believes that its assumptions are reasonable, it cautions that there are inherent difficulties in predicting certain important factors, such as the timing and magnitude of software sales, the effect of Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 issues on software and services buying decisions, the timing and scope of technological advances, the integration and performance of acquired businesses, the prospects for future acquisitions, the ability to attract and retain key personnel, and the overall condition of the financial services industry. These factors, as and when applicable, are discussed in the Company's filings with the Securities and Exchange Commission, including its most recent Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , a copy of which may be obtained from the Company without charge.
SunGard Data Systems Inc.
Consolidated Condensed Income Statements
Excluding Restatements, Merger Costs and Extraordinary Items
(See Notes 1 and 2)
(In thousands, except per share amounts)
(Unaudited)
June 30,
----------------------------------------
Six Months Ended Three Months Ended
---------------- ------------------
2000 1999 2000 1999
---- ---- ---- ----
Revenues $785,761 $653,017 $401,096 $333,436
-------- -------- -------- --------
Costs and expenses:
Cost of sales and
direct operating 318,694 277,775 154,427 141,690
Sales, marketing
and administration 174,544 134,861 89,159 66,311
Product development 69,210 58,514 35,031 30,075
Depreciation and
amortization 42,848 34,572 22,101 17,536
Amortization of
acquisition-related
intangible assets 27,849 20,083 14,720 10,279
-------- -------- -------- --------
633,145 525,805 315,438 265,891
-------- -------- -------- --------
Income from
operations,
excluding merger
costs 152,616 127,212 85,658 67,545
Interest income 10,634 7,455 5,267 4,100
Interest expense (768) (841) (311) (461)
-------- -------- -------- --------
Income before income
taxes, excluding
merger costs and
extraordinary items 162,482 133,826 90,614 71,184
Income taxes 64,993 54,066 36,246 28,570
-------- -------- -------- --------
Net income, excluding
merger costs and
extraordinary items $ 97,489 $ 79,760 $ 54,368 $ 42,614
-------- -------- -------- --------
Basic net income per
common share,
excluding merger costs
and extraordinary items $ 0.74 $ 0.68 $ 0.41 $ 0.36
-------- -------- -------- --------
Shares used to compute
basic net income per
common share 131,474 117,104 131,704 119,262
-------- -------- -------- --------
Diluted net income per
common share, excluding
merger costs and
extraordinary items $ 0.72 $ 0.66 $ 0.40 $ 0.35
-------- -------- -------- --------
Shares used to compute
diluted net income per
common share 134,585 120,980 134,973 122,627
-------- -------- -------- --------
See Notes to Consolidated Condensed Financial Information.
SunGard Data Systems Inc.
Supplemental Income Statement Information
Excluding Restatements, Merger Costs and Extraordinary Items
(See Notes 1 and 2)
(In thousands)
(Unaudited)
June 30,
-----------------------------------------
Six Months Ended Three Months Ended
---------------- ------------------
2000 1999 2000 1999
---- ---- ---- ----
Revenues:
Investment support
systems $572,919 $462,259 $291,564 $235,567
Business continuity
and Internet
services 196,942 172,700 100,579 90,512
Other businesses 15,900 18,058 8,953 7,357
-------- -------- -------- --------
$785,761 $653,017 $401,096 $333,436
-------- -------- -------- --------
Income from
operations:
Investment support
systems $106,170 $ 93,594 $ 59,444 $ 44,773
Business continuity
and
Internet services 52,406 40,448 29,358 25,582
Other businesses 4,554 1,323 3,128 1,246
Corporate
administration (10,514) (8,153) (6,272) (4,056)
-------- -------- -------- --------
$152,616 $127,212 $ 85,658 $ 67,545
-------- -------- -------- --------
Operating margin:
Investment support
systems 18.5% 20.2% 20.4% 19.0%
-------- -------- -------- --------
Business continuity
and Internet
services 26.6% 23.4% 29.2% 28.3%
-------- -------- -------- --------
Other businesses 28.6% 7.3% 34.9% 16.9%
-------- -------- -------- --------
Total 19.4% 19.5% 21.4% 20.3%
-------- -------- -------- --------
See Notes to Consolidated Condensed Financial Information.
SunGard Data Systems Inc.
Consolidated Condensed Income Statements
Including Restatements, Merger Costs and Extraordinary Items
(See Notes 1 and 2)
(In thousands, except per share amounts)
(Unaudited)
June 30,
--------------------------------------
Six Months Ended Three Months Ended
---------------- ------------------
2,000 1,999 2,000 1,999
----- ----- ----- -----
Revenues $785,761 $704,520 $401,096 $352,873
-------- -------- -------- --------
Costs and expenses:
Cost of sales and
direct operating 318,694 303,098 154,427 150,703
Sales, marketing
and administration 174,544 150,691 89,159 73,894
Product development 69,210 63,238 35,031 31,544
Depreciation and
amortization 42,848 36,936 22,101 18,594
Amortization of
acquisition-related
intangible assets 27,849 21,046 14,720 10,656
Merger costs,
including noncash
charge of $71,459
in 1999
(see Note 2) 2,756 90,446 1,156 5,222
-------- -------- -------- --------
635,901 665,455 316,594 290,613
-------- -------- -------- --------
Income from
operations 149,860 39,065 84,502 62,260
Interest income 10,634 7,670 5,267 3,990
Interest expense (768) (1,134) (311) (608)
-------- -------- -------- --------
Income before
income taxes and
extraordinary
items 159,726 45,601 89,458 65,642
Income taxes 64,530 55,183 35,783 28,843
-------- -------- -------- --------
Net income (loss)
before
extraordinary
items 95,196 (9,582) 53,675 36,799
Extraordinary
items, net of
income taxes 0 10,670 0 0
-------- -------- -------- --------
Net income 95,196 1,088 53,675 36,799
Pro forma income
tax benefit
resulting from
acquired Subchapter
S corporation 0 (27,381) 0 (447)
-------- -------- -------- --------
Pro forma net income
after extraordinary
items $ 95,196 $ 28,469 $ 53,675 $ 37,246
-------- -------- -------- --------
Pro forma basic net
income per common
share:
Before extraordinary
items $ 0.72 $ 0.14 $ 0.41 $ 0.30
-------- -------- -------- --------
After extraordinary
items $ 0.72 $ 0.23 $ 0.41 $ 0.30
-------- -------- -------- --------
Shares used to
compute pro forma
basic net income per
common share 131,474 124,322 131,704 125,223
-------- -------- -------- --------
Pro forma diluted net
income per common
share:
Before extraordinary
items $ 0.71 $ 0.14 $ 0.40 $ 0.29
-------- -------- -------- --------
After extraordinary
items $ 0.71 $ 0.22 $ 0.40 $ 0.29
-------- -------- -------- --------
Shares used to compute
pro forma diluted net
income per common
share 134,585 128,374 134,973 128,720
-------- -------- -------- --------
See Notes to Consolidated Condensed Financial Information.
SunGard Data Systems Inc.
Supplemental Income Statement Information
Including Restatements, Merger Costs and Extraordinary Items
(See Notes 1 and 2)
(In thousands)
(Unaudited)
June 30,
-----------------------------------------
Six Months Ended Three Months Ended
---------------- ------------------
2000 1999 2000 1999
---- ---- ---- ----
Revenues:
Investment support
systems $572,919 $513,762 $291,564 $255,004
Business continuity
and Internet
services 196,942 172,700 100,579 90,512
Other businesses 15,900 18,058 8,953 7,357
-------- -------- -------- --------
$785,761 $704,520 $401,096 $352,873
-------- -------- -------- --------
Income from
operations:
Investment support
systems $106,170 $ 95,893 $ 59,444 $ 44,710
Business continuity
and Internet
services 52,406 40,448 29,358 25,582
Other businesses 4,554 1,323 3,128 1,246
Corporate
administration (10,514) (8,153) (6,272) (4,056)
Merger costs (2,756) (90,446) (1,156) (5,222)
-------- -------- -------- --------
$149,860 $ 39,065 $ 84,502 $ 62,260
-------- -------- -------- --------
Operating margin
(excluding merger
costs):
Investment support
systems 18.5% 18.7% 20.4% 17.5%
-------- -------- -------- --------
Business continuity
and Internet
services 26.6% 23.4% 29.2% 28.3%
-------- -------- -------- --------
Other businesses 28.6% 7.3% 34.9% 16.9%
-------- -------- -------- --------
Total 19.4% 18.4% 21.4% 19.1%
-------- -------- -------- --------
See Notes to Consolidated Condensed Financial Information.
SunGard Data Systems Inc.
Consolidated Condensed Balance Sheets
(In thousands)
June 30, 2000 Dec. 31, 1999
(Unaudited)
------------- -------------
Assets:
Current:
Cash, equivalents and
short-term investments $ 354,320 $ 391,225
Accounts receivable, net 342,084 334,402
Prepaid expenses and
other current assets 67,981 61,180
---------- ----------
Total current assets 764,385 786,807
Property and equipment, net 191,653 182,682
Software products, net 140,172 110,355
Goodwill, deferred income
taxes and other intangible
assets, net 567,556 484,918
---------- ----------
$1,663,766 $1,564,762
---------- ----------
Liabilities and Stockholders'
Equity:
Current:
Short-term and current
portion of long-term debt $ 10,744 $ 7,755
Accounts payable and accrued
expenses 160,565 174,857
Deferred revenue 174,541 165,866
---------- ----------
Total current liabilities 345,850 348,478
Long-term debt 7,449 5,517
Stockholders' equity 1,310,467 1,210,767
---------- ----------
$1,663,766 $1,564,762
---------- ----------
See Notes to Consolidated Condensed Financial Information.
SunGard Data Systems Inc.
Notes to Consolidated Condensed Financial Information
(In thousands, except per share amounts)
Note 1. Basis of Income Statement Presentation:
Excluding Restatements, Merger Costs and Extraordinary Items:
a) Excludes all one-time merger costs and extraordinary items, as
described in Note 2.
b) Includes all 1999 poolings of interests only from
the beginning of the quarter during which the
merger was completed.
Including Restatements, Merger Costs and Extraordinary Items:
a) Includes all poolings of interests that resulted in the
restatement of previously reported results (Automated Securities
Clearance, Ltd., FDP Corp., Oshap Technologies Ltd., Pentamation
Enterprises, Inc. and Sterling Wentworth Corporation) for all
periods presented.
b) Includes all one-time merger costs and extraordinary items, as
described in Note 2.
Note 2. Merger Costs and Extraordinary Items:
Six months ended June 30, 2000 and 1999:
During 2000, merger costs of $2,756 ($2,293 after-tax,
or $0.02 per diluted share) were recorded. The one-
time costs are associated with pooling-of-interests
transactions, and include severance, investment
banking, legal and accounting fees.
During 1999, merger costs of $90,446 ($62,571 pro forma
after-tax, or $0.49 per restated pro forma diluted
share) were recorded. The one-time merger costs are
associated with poolings of interests, including a
noncash charge in connection with a pre-existing
employment agreement with an executive of ASC, which
obligated ASC to issue to the executive 25% of the
shares issued in the merger. The fair value of those
shares and related payroll costs totalling $71,459 were
recorded as one-time costs associated with the merger.
ASC was an "S" corporation prior to the merger with
SunGard; therefore, substantially all income passed
through directly to and substantially all income taxes
were paid directly by the shareholder of ASC. Pro forma
net income is presented since generally accepted
accounting principles require that pro forma income
taxes be reflected on the Statements of Income for all
periods presented, thereby reflecting income taxes that
would have been paid by ASC if ASC had been a "C"
corporation.
Also during 1999, the Company sold two subsidiaries
which resulted in an extraordinary gain of $16,467
($10,371 after-tax, or $0.08 per diluted share). In
addition, the Company recorded an extraordinary gain of
$299 resulting from the repurchase of convertible debt
by an unconsolidated subsidiary acquired in a
pooling-of-interests transaction.
Three months ended June 30, 2000 and 1999:
During 2000, merger costs of $1,156 ($693 after-tax, or
less than $0.01 per diluted share) were recorded. These
one-time costs are associated with a
pooling-of-interests transaction.
During 1999, merger costs of $5,222 ($3,787 pro forma
after-tax, or $0.03 per restated pro forma diluted
share) were recorded. The one-time merger costs are
associated with poolings-of-interests transactions.
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion